Ford and China’s BYD are holding talks over a possible battery supply arrangement for some of Ford’s hybrid vehicles, citing sources, The Wall Street Journal (WSJ) reported.
The potential arrangement comes as the US carmaker reduces the scale of its electric vehicle (EV) programme while increasing its focus on hybrids.
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One option being considered would involve Ford sourcing batteries from BYD for use at its manufacturing sites outside the US.
Sources told the WSJ the talks are in their early stages, no deal has been reached, and the discussions could still end without an agreement.
The report said Ford needs additional battery capacity to support its hybrid and extended-range plug-in hybrid line-up.
BYD, meanwhile, has built up extensive battery production capabilities, including for hybrid vehicles.
Most of BYD’s battery output is currently based in China, although the company is expanding manufacturing overseas as it grows its presence in regions such as Southeast Asia, Europe and Brazil.
In December last year, Ford said it would scale back certain EV production plans amid softer demand and record expected charges of $19.5bn, largely linked to its EV operations.
The company has set a target for about half of its global sales by 2030 to come from hybrids, extended-range plug-in hybrids and fully electric vehicles, alongside a strengthened portfolio of petrol-powered models.
BYD manufactures batteries for commercial vehicles at its bus plant in California but does not produce passenger-car batteries in the US.
Ford, for its part, is constructing a battery facility in Marshall, Michigan, which will manufacture lower-cost cells using technology licensed from Chinese battery producer Contemporary Amperex Technology.
The two companies have collaborated previously.
In 2020, Ford began using BYD-supplied batteries in China for vehicles produced through its joint venture with state-owned automaker Changan.
BYD later approached Ford about supplying batteries for vehicles sold in other international markets.
